India’s economy grew 7.4% in Q4 of 2024-25, faster than expected and driven by strong construction, agriculture, and services sectors.
However, annual growth for the full year was just 6.5%, the slowest since the pandemic.
Manufacturing slowed down, growing only 4.8% in Q4, compared to 11.3% in the same period last year.
A big part of the 7.4% Q4 GDP growth came from a 12.7% rise in tax collections, which inflated the overall figure.
Without the tax boost, real economic activity would show about 6.8% growth.
Consumer spending grew only 6% in Q4, the slowest in five quarters, despite hopes of a boost from the ‘Maha Kumbh’ festival.
Capital investments rose by 9.4%, helped by faster government spending.
Officials said 6.5% growth is still strong globally, but experts argue it falls short of what India needs.
To achieve the goal of a developed India by 2047, sustained annual growth of around 8% is needed.
Current growth shows stability but lacks the acceleration required for long-term national development goals.
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